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Fees & Profitability

Understanding Amazon Closing Fees, Shipping Fees and GST on Fees

A practical explanation of the other Amazon charges that can remain even when a referral-fee rate is low or zero.

Reviewed by Amit SwaroopFounder, Chandra Ecom Solutions — Marketplace practitioner focused on Amazon seller operations, catalogue, advertising, account health and seller support workflows.
Key takeaways
  • Referral fee is only one part of the Amazon charge stack.
  • Closing and fulfilment/shipping charges can vary by price, fulfilment route, weight, dimensions and delivery conditions.
  • GST can apply to Amazon service fees.
  • A fee estimate should be treated separately from product cost, advertising and returns.

Closing fee

Amazon India applies closing-fee rules that can vary by fulfilment channel and item-price slab. The closing fee is separate from the referral fee, so a product with a 0% referral rate can still incur a closing fee.

Shipping and fulfilment charges

The applicable delivery or fulfilment charge depends on the route used. FBA, Easy Ship, Self Ship and Seller Flex do not share one universal shipping-cost formula. Chargeable weight, dimensions and delivery zone can affect some fulfilment charges.

GST on Amazon fees

Amazon service fees can attract GST. When estimating receivable, GST on applicable Amazon charges should be included rather than comparing only the headline referral or fulfilment fee.

Why estimates and settlements can differ

Exact settlements can also be affected by programme eligibility, account-level adjustments, returns, reimbursements and other transaction-specific items. Use an estimator for planning, then reconcile actual settlements from Seller Central.

Practical workflow

Itemised deduction workflow

StepWhat to check
1. Selling priceActual order/item price used for the transaction
2. Referral feeExact fee category + price slab
3. Closing feeFulfilment channel + current price slab/category group
4. Shipping / fulfilmentChannel, chargeable weight, dimensions and delivery conditions
5. GST on Amazon feesApplicable tax on Amazon service charges
6. ReconcileCompare estimator with the actual transaction/settlement statement
Important: This is a reconciliation framework, not a tax invoice or accounting statement. Use Seller Central transaction data for actual charges.
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